currencies slide further as gold gains.

Much of the Western world is suffering from government overspending and impending inflation. Almost every Socialist govrnment in Europe has been stimulating its economy (or at least trying to) by lowering interest rates. The first graph shows the calculated interest rates in Britain and the value of British pound. We see the pound losing ground. When expressed in terms of gold, the Euro is losing its value as well.

The third graph down shows the value of US treasuries. They are also losing value because investers anticipate inflation. Look at the bearish head and shoulders pattern and the downturn of the 300 DMA.

The next two graphs show the US Dollar. The first graph is the graph of the last three years while the next graph shows the US Dollar over a shorter period of time. It is evident that the recent rise in the value of thedollar is now over. We are not surprised then to see gold ending its downward trend and beginning a skow rise.

We see then these trends solidifying as it is entranched.